John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018:
- John’s purchased merchandise on account for $6,600. Freight charges of $1,100 were paid in cash.
- John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,400 and John’s account was credited by the supplier.
- Merchandise costing $3,600 was sold for $6,800 in cash.
Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)